In May 1993, the FASB issued SFAS No.115, "Accounting for Certain Investments in Debt and Equity Securities," which addresses the accounting and reporting for investments in equity securities that have readily determinable fair values and for all investments in debt securities. Under SFAS No. 115, certain investments in debt and equity securities are classified in the following three categories: held-to-maturity, trading or available-for-sale securities. Debt and equity securities classified as available-for-sale securities are reported at fair value, with unrealized gains and losses reported in a separate component of shareholders' equity, net of taxes. In the case of the company, SFAS No.115 would have been effective from the fiscal year beginning April 1, 1994. At the request of the company and other Japanese companies which file their consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America with the United States Securities and Exchange Commission (the "SEC") and the Japanese Ministry of Finance, in August 1993 the SEC issued a confirmation letter to them that the SEC would filings by the company and other Japanese companies that do not adopt the provisions of SFAS No.115 in their primary financial statements, but provide the information required by the provisions of SFAS No.115 in a note to the financial statements.
The effects on the consolidated balance sheet accounts at March 31, 1995 of the departure from the provisions of SFAS No.115 are summarized as follows:
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In millions In thousands of
of yen U.S.dollars
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Shareholders' equity as reported..................................................... Y790,749 $ 9,089,068
Net increase in carrying amount of:
Marketable securities ---Current................................................. 78,135 898,103
---Noncurrent.............................................. 165,834 1,906,138
Net decrease in deferred tax assets and increase in deferred tax liabilities:
Deferred tax assets ---Current................................................. 8,416 96,736
---Noncurrent.............................................. 4,542 52,207
Deferred tax liabilities---Current................................................. (48,265) (554,770)
---Noncurrent.............................................. (90,694) (1,042,460)
Net increase in investments and advances --- affiliated companies and other.......... 10,844 124,644
Net increase in minority interest.................................................... (325) (3,736)
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Shareholders' equity in accordance with accounting principles
generally accepted in the United States of America.................................. Y919,236 $10,565,930
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The following is a summary of marketable securities by major security types:
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In millions of yen In thousands of yen
-------------------------------------------- -------------------------------------------
1994 1995
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Gross Gross Gross Gross
unrealized unrealized unrealized unrealized
Carrying holding holding Carrying holding holding
March 31 amount gains losses Fair value amount gains losses Fair value
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Current
Available-for-sale:
Equity securities...... Y82,731 Y128,576 Y13,869 Y197,438 Y88,045 Y94,625 Y16,502 Y166,168
Debt securities........ 59,826 594 --- 60,420 6,755 12 --- 6,767
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Y142,557 Y129,170 Y13,869 Y257,858 Y94,800 Y94,637 Y16,502 Y172,935
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Noncurrent
Available-for-sale:
Equity securities...... Y77,019 Y244,132 Y6,643 Y314,508 Y94,934 Y170,120 Y 6,910 Y258,144
Debt securities........ 11,594 2,121 --- 13,715 23,757 2,624 --- 26,381
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Y88,613 Y246,253 Y6,643 Y328,223 Y118,691 Y172,744 Y 6,910 Y284,525
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In thousands of U.S. dollars
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1995
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Gross Gross
unrealized unrealized
Carrying holding holding
March 31 amount gains losses Fair value
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Current
Available-for-sale:
Equity securities.................................................$1,012,011 $1,087,644 $189,678 $1,909,977
Debt securities................................................... 77,644 138 --- 77,782
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$1,089,655 $1,087,782 $189,678 $1,987,759
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Noncurrent
Available-for-sale:
Equity securities.................................................$1,091,195 $1,955,402 $79,425 $2,967,172
Debt securities................................................... 273,069 30,161 --- 303,230
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$1,364,264 $1,985,563 $79,425 $3,270,402
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The net unrealized holding gain, net of taxes, on available-for-sale securities for the year ended March 31, 1995 decreased by 45,419 million yen ($522,057 thousand).
Contractual maturities of debt securities for available-for-sale securities are due in the period from April 20, 1995 to November 15, 2016.
For the year ended March 31, 1995, proceeds from sales of available-for-sale securities were 96,021 million yen ($1,103,690 thousand), and gross realized gains and losses on those sales were 24,018 million yen ($276,069 thousand) and 372 million yen ($4,276 thousand), respectively. For the years ended March 31, 1993 and 1994, net realized gains on the disposal of marketable equity securities were 13,781 million yen and 25,179 million yen, respectively.
